Q: My family company (the trustee of our unit trust) is selling a commercial property for $2.95 million which we settled on July 1. Can I move the entire proceeds from the trust sale into my wife’s and my self-managed super fund after settlement and not breach super contribution limits? Can I also claim the transfer as a tax deduction in the trust? The property has been held since 2007. I am 68 and my wife is 61. Is there also a tax benefit for the trust from the transfer into the SMSF? John
A: Over the past 25 years, several thousand owners of small businesses who also have an SMSF have been able to transfer the proceeds from the sale of an investment property from which their business has operated to the fund with attractive tax concessions if they can satisfy certain important conditions. These concessions come in the form of capital profits from the property sale that are free of tax and can also be contributed to super without counting against your contribution limits.